UPDATE 2-Libya's Muammar Gaddafi vows to fight on - TV

CAIRO, Sept 1 (Reuters) - Muammar Gaddafi called on his
supporters to set Libya ablaze, vowed his backers would not give
up and said those against him were divided, according to an
audio message broadcast on Arabic news channels on Thursday.

"They want to enter a long battle with us. Let it be a long
battle. We will fight from place to place, from town to town,
from valley to valley, from mountain to mountain," Gaddafi said
in his message.

"If Libya goes up in flames, who will be able to govern it?
Let it burn. They don't want to rule Libya. They cannot rule it
as long as we are armed. We are still armed. We will fight in
every valley, in every street, in every oasis, and every town."

Gaddafi's whereabouts were a mystery. He gave no indication
of where he was in his audio remarks.

A Libyan military chief said Gaddafi was believed to be in
Bani Walid outside Tripoli planning a fight-back. An Algerian
newspaper has reported him to be in the border town of Ghadamis.

The ruling National Transitional Council (NTC), which
ousted him, is seeking the surrender of Gaddafi's coastal home
town of Sirte and other areas loyal to him.

Gaddafi said tribes in Bani Walid, Sirte and other areas of
the country were armed and could not be subdued. He said those
fighting against him were divided and called on tribes in
Tripoli to ambush his opponents.
Continued...